Apple in talks with a film distribution company

TOY MAKER FOR THE WELL HEELED Apple is in secret talks with a film distribution company, according to reports.

Reuters cited company sources in reporting that Apple began talks earlier this year to stream films owned by Epix on its devices including a long-anticipated TV, according to two people with knowledge of the negotiations. Epix is a film distribution company backed by the Hollywood studios Paramount Pictures, Lion's Gate and MGM.

If the report is true, the discussions will secure a mobile film streaming service on Apple media gadgets, including the set-top box Apple TV and Apple's anticipated television sets, which are expected to be named ITV.

Apple said "it declines to comment on rumours or speculation," but if the reports are correct we could see Apple launch an ITV set by late 2012 or early 2013.

So far, the Apple TV set-top box has yet to generate strong sales and the company has described the line as a 'hobby' project.

A deal like this might be just what the cappuccino company needs to boost TV related device sales and secure its position among the throng of living room entertainment providers.

Apple announced its best ever financial run this last week, reporting a record financial quarter featuring $11.6bn in profits, with 35.1 million Iphones and 11.8 million Ipads sold.

However, industry analysts have predicted that the company could see Apple's business slump as it struggles to replace the leadership of the late Steve Jobs.

Last week, research firm Strategy Analytics reported that Korean smartphone maker Samsung overtook Apple as the world's largest phone vendor due to a surge in demand for Samsung's Galaxy models such as the Galaxy Note, Galaxy S II and Galaxy Y. µ